Apple urges U.S. appeals court to void 'radical' e-books ruling

NEW YORK Feb 26 Apple Inc urged a U.S.
appeals court to throw out a judge's "radical" finding that it
violated antitrust law by manipulating electronic book prices,
and blamed publishers for running a conspiracy it claimed to
know nothing about.

The request on Tuesday night came after U.S. District Judge
Denise Cote in New York concluded last July after a nonjury
trial that Apple had played a "central role" in illegally
scheming as early as December 2009 with five publishers to raise
e-book prices and impede competitors such as Amazon.com Inc
.

The publishers previously agreed to pay more than $166
million to settle related antitrust charges.

Apple introduced e-books in 2010 to help boost sales for its
then-new iPad tablet.

In a filing with the 2nd U.S. Circuit Court of Appeals in
New York, Apple said it "had no knowledge that the publishers
were engaged in a conspiracy" at any time.

It said it lawfully took advantage of market "discord" and
the publishers' own frustrations with Amazon, and "kick-started
competition in a highly concentrated market, delivering higher
output, lower price levels, and accelerated innovation."

The Cupertino, California-based company asked the 2nd
Circuit to reverse Cote's decision or else give it a new trial
before a different judge.

Apple also again faulted Cote's appointment of Washington
lawyer Michael Bromwich to monitor its antitrust compliance,
calling that oversight unconstitutional.

The U.S. Department of Justice, which brought the case, was
not immediately available on Wednesday for comment. That agency
is expected to reply in writing to Apple's request.

In her decision, Cote also found Apple liable to 33 U.S.
states for antitrust violations. She is expected to consider
possible damages later this year. Apple said the states and
private plaintiffs sought more than $800 million of damages.

On Feb. 10, the 2nd Circuit rejected Apple's request to halt
Bromwich's oversight during its appeal.

The case is U.S. v. Apple Inc, 2nd U.S. Circuit Court of
Appeals, No. 13-3741.

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